Why Is Lucid Group (LCID) Down 21.2% Since Last Earnings Report?

It has been about a month since the last earnings report for Lucid Group (LCID). Shares have lost about 21.2% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Lucid Group due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.Key HighlightsRevenue: $336.6 million in Q3’25, up 68% year over year and topping the Zacks Consensus Estimate by 3.38%Quarterly loss per share: $3.31, narrower than $4.10/share incurred in the year-ago period but wider than the Zacks Consensus Estimate of $2.32.Deliveries: 4,078 vehicles, up 47% year over year; seventh straight quarterly recordProduction: 3,891 vehicles, up 116% year over year; plus over 1,000 additional vehicles built for final assembly in Saudi ArabiaGAAP gross margin: approximately -99% vs -106% in Q3’24Adjusted EBITDA: loss of approximately $718 million vs loss of $613 million in Q3’24Liquidity: $4.2 billion at quarter end; pro forma would have been about $5.5 billion including the now-increased undrawn DDTL facilityFCF: Negative $955.5 million, wider than $622.5 million in Q3’24.Costs and MarginsRevenue growth and mix benefited top-line performance, but tariffs and input costs weighed on Lucid's margins and Adjusted EBITDA. Management noted tariffs reduced GAAP gross margin by about 13 points. Q3 results also included inventory build effects and impairments ahead of the Q4 ramp.Research and development expenses were $325.3 million in the reported quarter compared with $324.3 million in the third quarter of 2024. Selling, general and administrative expenses amounted to $283 million, up from $233.5 million in the year-ago quarter.  Loss from operations totaled $942 million, wider than $770.5 million incurred in the year-ago quarter.Operating expenses reflected increased sales and marketing, ongoing midsize platform investment, autonomy initiatives, and costs associated with growing the production base.LiquidityQuarter-end liquidity was $4.2 billion, consisting of roughly $3.0 billion of cash, cash equivalents, and investments plus available credit facilities. Subsequent to quarter end, Lucid and the Public Investment Fund increased the delayed-draw term loan facility to approximately $2.0 billion, undrawn, extending runway into the first half of 2027.GuidanceFor 2025, management expects year-end production around 18,000 units, with capital expenditures of $1.0 to $1.2 billion. The company expects significant delivery growth in Q4 2025, with Gravity as a mix driver for average selling prices and revenue.How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a upward trend in estimates revision.The consensus estimate has shifted 6.93% due to these changes.VGM ScoresAt this time, Lucid Group has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Lucid Group has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.Performance of an Industry PlayerLucid Group is part of the Zacks Automotive - Domestic industry. Over the past month, Rivian Automotive (RIVN), a stock from the same industry, has gained 18.7%. The company reported its results for the quarter ended September 2025 more than a month ago.Rivian Automotive reported revenues of $1.56 billion in the last reported quarter, representing a year-over-year change of +78.3%. EPS of -$0.70 for the same period compares with -$1.03 a year ago.Rivian Automotive is expected to post a loss of $0.68 per share for the current quarter, representing a year-over-year change of -30.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +10.6%.Rivian Automotive has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lucid Group, Inc. (LCID): Free Stock Analysis Report Rivian Automotive, Inc. (RIVN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks